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Policy Update: Trump Administration Releases its FY 2027 R&D Budget Priorities

by Lewis-Burke Associates

The Trump Administration released its annual memorandum on priorities for research and development (R&D) for fiscal year (FY) 2027, offering a forecast of federal agencies’ science and technology (S&T) investments in the next President’s budget request. Like prior years, the memo was developed and issued jointly by the White House Office of Management and Budget (OMB) and Office of Science and Technology Policy (OSTP). The FY 2027 memorandum acknowledges the importance of the U.S. science and technology enterprise to American prosperity and the partnership of government with academia, non-profit research institutions, and, increasingly, industry and the private sector for applied research and commercialization. The White House calls for aligning federal R&D for targeted, mission-driven investments in artificial intelligence (AI), quantum science, nuclear energy, biotechnology, technology for national security, and space exploration.

The memorandum, which outlines five broad R&D priority areas and several cross-cutting actions for agencies, notes as its first priority to “ensure and extend American leadership in key critical and emerging technologies.” Similar to the Trump Administration’s first term priorities related to “Industries of the Future,” these technologies include AI, quantum sciences, advanced communications, and advanced manufacturing, along with semiconductors, microelectronics and future computing technologies, such as testbeds and computing infrastructure. In addition to advancing and maintaining U.S. leadership in each of these key technologies, the memorandum also emphasizes accelerating technological innovation for our energy supply, consistent with the President’s January 2025 Executive Order on Unleashing American Energy, that includes focus on nuclear fission and fusion, geothermal, hydropower, and addressing critical mineral needs.

Other R&D priorities include observing and understanding “the physical, biological, geologic, and socioeconomic processes and interacting systems of the Arctic” and technologies for seabed exploration for mining and ocean observation. On the national security side, the R&D memo highlights priority investments to address emerging threats such as unmanned systems and hypersonics, building capabilities for the recent Golden Dome for America Initiative, and protecting our nation’s critical infrastructure. The memorandum also notes the importance of health and biotechnology, reflecting similarities of research foci for diseases and prevention outlined in the Make America Health Again (MAHA) Commission, as well as with biological threat detection and mitigation, and domestic biomanufacturing. Lastly, the R&D priorities include an emphasis on U.S. space dominance, in both civilian and defense contexts, which includes human space exploration and development, space weather, and transformative space technologies.  

Under the memorandum’s cross-cutting activities for agencies, the White House continues its emphasis on Restoring Gold Standard Science, increasing calls for shared scientific research infrastructure and digital tools, better interagency coordination, and advancing public-private partnerships. To prepare students for the future, the memorandum supports efforts for all Americans to have “access to high-quality STEM education and workforce development pathways.”  Agencies should also explore innovative models for funding and the memorandum acknowledges that agencies may need to realign to focus on high-value R&D investments.

Below is a summary of the R&D priority areas identified in the memo:

• Ensure Unrivaled American Leadership in Critical and Emerging Technologies
  • Artificial Intelligence (AI)
  • Quantum Information S&T
  • Semiconductors and Microelectronics
  • Advance Communications Networks
  • Future Computing Technologies
  • Advanced Manufacturing
• Unleash American Energy Dominance and Explore New Frontiers
  • American Energy Dominance
  • Polar Regions Research
  • Ocean Exploration and Observation
• Strengthen American Security
  • Advanced Military Capabilities
  • America’s Golden Dome
  • Preparedness and Resilience
• Strengthen and Safeguard American Health and Biotechnology
  • America’s Health
  • Biosafety and Biosecurity
  • Domestic Biomanufacturing Capabilities
• Assure America’s Continued Space Dominance

The memo also contains four Cross-Cutting Priorities:

• Implement and Support Gold Standard Science
• Build the S&T Workforce of the Future
• Expand and Make Accessible World-Class Research Infrastructure
• Revitalize and Strengthen America’s S&T Ecosystem
• Focus on High-Value Research Efforts

Sources and Additional Information:

• The FY 2027 R&D Priorities Memo can be found at https:/www.whitehouse.gov/wp-content/uploads/2025/09/FY27-OMB-OSTP-RD-Priorites-Memo-FINALSIGNED.pdf.